Fraud Detection And Prevention Market Growth & Trends
The global fraud detection and prevention market size is anticipated to reach USD 90.07 billion by 2030, growing at a CAGR of 17.6% from 2023 to 2030, according to a recent study by Grand View Research, Inc. The proliferation of smartphones and the continued rollout of high-speed internet networks has triggered the adoption of mobile banking practices. Mobile banking helps reduce the crowds at banks and allows users to transact irrespective of location. According to a GSMA report, nearly 300 million individuals got connected for the first time to mobile internet in 2018, thereby taking the total global connected population to over 3.5 billion. While mobile-based payment applications, such as Paytm, Apple Pay, Google Pay, and PayPal, among others, gained traction in line with the rising number of smartphone users, these applications also emerged as the major targets of fraudsters, thereby prompting banks to offer online banking services and payment services companies to opt for fraud detection and prevention solutions to counter fraudsters’ intrusion threats and save the users from monetary losses.
The outbreak of the COVID-19 pandemic in 2020 has triggered the adoption of mobile banking services as banking service users prefer to avoid travel and human contact within bank premises. MX, a digital transformation platform for credit unions, banks, and fintech, revealed new research findings related to consumer spending and mobile banking adoption amid the economic uncertainty stemming from the COVID-19 pandemic. The data released in April 2020 has revealed a 50% increase in mobile banking engagement to control finances and plan the individual economic future. While the adoption of mobile banking is rising significantly, mobile banking is also getting potentially vulnerable to fraudulent activities, such as account takeovers, carrier data breaches, call center fraud, subscription fraud, and phishing, among others, thereby driving the demand for fraud detection and prevention solutions over the forecast period.
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Fraud Detection And Prevention Market Report
Fraud Detection And Prevention Market Report Highlights
- The service segment of the market by component is projected to witness the highest growth rate over 2023–2030. Organizations in developing economies are increasingly implementing robust fraud prevention strategies. Organizations require integration, consulting, training, and support services from fraud prevention service providers to implement a robust framework. The need for such professional consulting and other third-party services to detect fraud in real-time is expected to drive the segment growth over the forecast period
- The fraud analytics segment of the market by solution is projected to witness the highest growth rate over 2023–2030. Applications of such predictive and preventive analytical tools help enterprises take essential remediation measures. The potential benefits offered by the solutions are expected to drive the segment’s growth over the forecast period
- The managed services segment of the market by service is projected to witness the highest growth rate over 2023–2030. Managed service providers monitor business transactions and mines unusual user behavior in real-time across big data generated across all touchpoints driving its adoption
- The identity theft segment is projected to have the highest growth rate over the forecast period. Identity theft practices increase as criminals adapt to the foiling authentication process, thereby driving its growth
- The large enterprise segment is projected to occupy the largest share of the market by 2030, holding more than 70%of the market share. Fraudulent activities ranging from phishing and money laundering to distributed denial-of-service are prevalent among large enterprises, and such attacks could negatively impact business profit
- By vertical, the retail & e-commerce segment is projected to witness the highest growth rate over the forecast period, owing to an increasing need to protect customer information, including financial information such as credit card details and bank account details, among others. This has resulted in the broader adoption of fraud detection and prevention among retail & e-commerce vertical
